Austerity Measures

June 2026

In today’s world we’re reaching higher and higher levels of inflation and unemployment. This, coupled with growing uncertainty and declining confidence in corporate white-collar work due to continual layoffs, has got me thinking that a “two-income” household isn’t really “two-income” at all. It’s more like a one-income household with a backup plan. Given the pervasiveness of consumerism and social media culture, it would be surprising for the average person not to believe they should be living in austerity.

“We are already in the ‘working poor’ phase.” — u/VisibleConcert382, r/AusFinance (1083 upvotes)

I think more and more, ‘success’ at a high level will come from living well below your means. The reality is that the average household is basically on the poverty line, sustained only by financial credit. This in itself isn’t a “new” idea or observation, but I think the overwhelming burden on the middle class still goes under-discussed. It pains me to think that the general public and media commentators don’t push this thinking enough.

“Cost of living seems to be rapidly outpacing wage growth… I’m a decently high earner, but even I notice the difference. I have no clue how the average Aussie family does it.” — u/everbass, r/AusFinance (96 upvotes)

What happens if one person in the household loses their job?

“We just lost 60% of our household income after husband lost his job. Thankfully pulling it back to barebones we can still cover 4 walls so it’ll be tight but hopefully husband can get another job soon!” — u/HugeInteraction778, r/AusFinance (8 upvotes)

What if both people lose their job?

“I am now in the ‘working poor’ category. I work enough to cut out the bismal Jobseeker payment, but not enough to pay the minimum I need to pay each fortnight just to cover bills, obligations and living expenses.” — u/FINE, r/AusFinance (13 upvotes)

Would your current level of spending hold up without employment (i.e., living in poverty?)

In Australia, the after-tax income for minimum wage is roughly $45k per year, but average monthly spending is around $3k — which doesn’t even include rent. That means sustaining two adults on a single income will be difficult, even without considering rental payments. To me, that speaks volumes about the state of ‘average spend.’ Indeed, the average Australian ought to be acting as though they’re in poverty.

“The new norm for the middle class will be having 2 jobs or working 55ish hours… In the future you’re either the ass (wealth gained passively due to timing aka time-in-the-market)… or you’re the assplug (working and paying).” — u/ThePerfectMachine, r/AusFinance (83 upvotes)

Even if we take the median wage of $100k, which after tax is ~$75k — not much better. That can sustain two adults’ living expenses only, excluding rent or mortgage repayments. At this level, a serious commitment to austerity should be the norm, rather than chasing consumerism or social media lifestyles.

“60% of current renters will never own property. It’s going to be mass poverty.” — u/512165381, r/AusFinance (14 upvotes)

“Where are increasingly in a K Economy, the wealth disparity is increasing.” — u/KangarooBeard, r/AusFinance (7 upvotes)

Austerity Shopping Cart

As an example, it is certainly possible to aggressively pare down grocery costs. For example, if we concentrate on staples (lentils, eggs, rice, peanut butter, wombok, apples, oatmeal, milk + salt/pepper)

Assumptions for 1 person (moderate activity, ~2000-2500+ kcal/day):

Batch cook rice + lentils every 2-3 days.
~3-4 eggs/day average, generous wombok/apples, milk for cooking/porridge.
Week 1 includes bulk dry goods top-up (one-time larger buy for pantry base).
Weeks 2-4: Regular fresh + restock top-ups.
Added basic instant coffee and tea bags.
Total estimated weekly cost after Week 1: $35-55.